Dell Software Acquisition Set to Close Late in Dell’s FY17

Following the recent signing of a definitive agreement for Francisco Partners, a private equity firm, and Elliott Management Corp., a hedge fund management firm, to acquire the Dell Software Group, the deal is now anticipated to close in the third or fourth quarter of Dell’s FY17 (which ends which ends February 3, 2017), subject to approval by customary closing conditions and regulatory review and approval, according to a Dell spokesperson.

The purchase price for Dell Software was not disclosed, although a New York Times DealBook column said it is estimated to be more than $2 billion.

As Dell Inc. moves to sell its software business, it is also in the process of acquiring EMC. The total transaction for EMC is valued at $67 billion, according to Dell, and is also subject to customary conditions. At the time the EMC deal was announced, in late 2015, the companies said it would likely close in the second or third quarter of Dell’s fiscal year (within the months of May to October 2016). 

The addition of Dell Software’s security, systems and information management, and data analytics solutions is expected to bolster Francisco Partners and Elliott Management’s technology portfolios.

Dell Software’s portfolio of solutions span a number of areas critical to the business and IT management landscape, including advanced analytics, database management, data protection, endpoint systems management, identity and access management, Microsoft platform management, network security, and performance monitoring.

Among Dell Software's key products are Toad, Boomi, KACE, SharePlex, SonicWALL, Spotlight, Statistica, Identity Manager, Change Auditor, and Migration Manager.

There is a “tremendous growth opportunity for these businesses," according to Brian Decker, head of security investing at Francisco Partners. He added that network security and identity and access management are increasingly strategic imperatives for enterprises and the company looks forward to continued product innovation of Quest Software and SonicWALL in these areas. 

Dell purchased Quest Software, a provider of IT management software, as well as SonicWALL, a provider of advanced network security, secure remote access, email security, backup and recovery, and management and reporting software, in 2012.

For more information, visit

DBTA columnist Guy Harrison reflects on the Dell Software sale here.

Related Articles

Dell has completed the acquisition of EMC, creating a $74 billion company with a technology portfolio spanning hybrid cloud, software-defined data center, converged infrastructure, platform-as-a-service, data analytics, mobility and cybersecurity. Describing itself as the world's largest privately-controlled technology company, the combined entity will be known as Dell Technologies.

Posted September 07, 2016

EMC has announced that, based on a preliminary vote tally from the Special Meeting of Shareholders held on July 19, EMC shareholders approved the merger agreement among Denali Holding Inc., Dell Inc., Universal Acquisition Co., and EMC, and approved the other two proposals described in EMC's proxy statement relating to the meeting.

Posted July 20, 2016

Dell Reveals New Name After Merger with EMC

Posted May 02, 2016

Michael Dell Looks at the Future of IT at Dell World 2015

Posted October 21, 2015

In what is being hailed as the biggest tech merger ever, Dell Inc. and EMC Corp. today formally announced they have signed a definitive agreement under which Dell will acquire EMC. The total transaction is valued at $67 billion. The deal is expected to close in the second or third quarter of Dell's fiscal year which ends February 3, 2017 (within the months of May to October 2016). The industry is going through a "tremendous transformation," with the old style of IT being "pretty quickly disrupted" yet this rapid change is also presenting "incredibly rich" opportunities, said Joe Tucci, chairman and chief executive officer of EMC, during a conference call with media and industry analysts.

Posted October 12, 2015